This course takes the student from the level of microeconomics principles to current theories and topics in financial economics. The course will survey and introduce assetpricing models.. ArrowDebreu and Radner general equilibirium theories are developed and combined with NeumannMorgenstern utility theory. Both static and dynamic models are explored. Asset pricing models with and without arbitrage opportunities are discussed. Asset prcing puzzles are investigated. ModiglianiMiller arguments on capital structure are introduced. Binomial option pricing model is developed.
This course will introduce money from a theoretical perspective. First, issues such as money, functions of money and interest rates will be undertaken. Then, money supply, monetary policy of the central bank, money demand and the IS/LM model will be studied in detail. Finally, the international financial system, exchange rates and the relationship of money with inflation will be investigated.
The aim of the course is to deliver a complete understanding of the various\nresearch methods used in the Social Sciences, and to establish necessary practical skills required for their application. In this course, students will be developing a formal research proposal for a master thesis or term project on a topic as it relates to their individual graduate programmes with the supervision of their advisors and present it to the academic staff of the related graduate programme.
This course is designed to independently conduct a research and acquire the necessary competencies. Accordingly, a proper research question is identified under the guidance of an advisor, an extensive literature review is made, and a unique hypothesis and research design are determined by taking into consideration the methodologies and gaps in the literature. Within the framework of the research design, the relevant data is collected and a thesis including the theoretical basis, method, results and discussion of the research is written.
Supervisors and students together will evaluate previous research on the basis of rules of academic writing and discuss how to apply skills related to critical reading, understanding, synthesizing and contrasting and comparing. Students will work together with an assigned instructor on a selected area in their discipline. Students are also required to write a paper/report in this seminar.
BA 560 Financial Accounting
This course aims to set the fundamental basis for the future accounting and finance courses by covering the bookkeeping process and the reporting of the basic financial statements as the balance sheet, income statement, the statement of cash flows, and the statement of stockholder’s equity.
ECON 511 Funds Management in Commercial Banks
The course focuses on treasury management issues of commercial banks.
ECON 514 Speculative Markets
In recent years there has been phenomenal growth in the markets for futures contracts on financial assets, as well as options on these assets. Derivatives enable firms and portfolio managers to hedge a variety of risks. This course introduces the student to forward contracts, futures and options and walks the student through the process of using these instruments to hedge different risks.
ECON 515 Quantitative Methods in Economics and Finance
The course develops economic and financial models using EXCEL.The most widely used financial calculations will be performed in a spreadsheet format using simulated and real world data. Econometric analysis will be undertaken using the regression tool pack in EXCEL. At the end of the course, you will have several financial models in a spreadsheet format that you can modify for future use. Topics covered include NPV, IRR, Bond pricing, duration, option pricing, BlackSholes and binomial option pricing models, value at risk, value of the firm, portfolio risk.
ECON 516 Economics of Risk and Institutional Risk
The course focuses on the fundamentals of risk management and its evolution over time. It focuses on how to define, measure and manage risk by taking the students through a historical journey and introducing the heroes that contributed to the profession, from Bernoulli to Laplace, to Keynes, Kenneth Arrow, the father of risk management and derivatives. Later in the semester the course focuses on modern allocations of risk management with specific emphasis on company balance and bank balance sheets, operations of insurance companies etc. It concludes with tools to manage risk.
ECON 517 Financial Econometrics
The course will mostly be based on Time Series econometric methods. While this is the ideal approach for an introduction to the fundamental methods of quantitative finance, the student should keep in mind that the range of econometric methods that can be used to answer questions related to finance and financial economics spans almost the entire spectrum of econometrics. The course starts by reviewing basic tools of statistics and econometrics, and makes brief introductions to regression analysis, least squares methods, and some extensions of these topics. Then, numerous time series methods are discussed, including the estimation and forecasting of ARMA and ARIMA models, models of conditional heteroscedasticity (ARCH/GARCH), vector autoregressions, and cointegration. Each topic is discussed along with its applications in finance, keeping in mind the peculiarities of financial data and methods that are designed to work with such data.
ECON 520 International Macroeconomics
The course aims to give a rigorous introduction to international macroeconomics. To this end, the lectures present core models, including one-period, two period, and infinite horizon open economy models, and discuss dynamic and stochastic analysis of current account, exchange rate determination, terms of trade, and global financial markets. After this course, students will have a deeper understanding of core models of open economy models and major research issues in international macroeconomics. The students will also be equipped with skills needed to critically read and evaluate the mainstream literature.
ECON 522 Turkish Economy
The course starts with an introduction to growth dynamics of the Turkish economy. We then discuss labor market. Savings and investment are the major areas on which the course focuses. At the end the relationships between the structure of firms, firm behaviour and economic performances in recent decades are discussed throughly.
ECON 530 Energy Economics and Finance
This course examines economic theory, empirical perspectives, and political economy of energy supply and demand. It discusses aspects of local, national, and global markets for oil, natural gas, coal, electricity, nuclear power, and renewable energy; and examines public policies affecting energy markets including taxation, price regulation and deregulation, energy efficiency, and control of emissions. The course will also cover energy derivatives and the link between energy and financial markets.
ECON 531 Decision Economics
This course consists of a series of case studies that bring out the complexities of decisions with incomplete information. Cases cover purely financial or economic investment decisions in a variety of sectors and a economic environments.
ECON 532 Macroeconomics for Investment
The course aims to provide a macroeconomic framework to aid understanding of the movement of financial markets. It aims to do so both by using traditional macroeconomic equations, but also by developing macroeconomic proxies and signals developed from ideas familiar to corporate analysts and investors. It aims to provide not just a theoretical framework for analysing growth, elements of the business cycle, and the cashflows associated with them, but also practical demonstrations and tools. Throughout, the ideas will be accompanied by casestudies derived from current or nearcurrent economic and financial situations, principally from the US and Asia.Each class will kick off with a discussion of current events in the markets and how these relates to the course material.
ECON 534 The Global Economic and Financial Crisis
This course will start with a macroscopic view of developments affecting the operation of the global economic system. Alternative perspectives on how to explain economic crises and determine the priorities of economic policy will be discussed. Finally, the flawed response to the crisis will be analyzed.
ECON 535 Economic and Financial Networks
The subjects of the course are the economic and financial networks. Materials to be covered in the course include firm ownership networks and stock prices correlation networks. Networks measures such as centrality, density and average distance will be discussed. Random link formation and strategic link formation will be examined. The spread of information, epidemics or opinions on the networks will be studied. In the course students will use network analysis software packages such as PAJEK, Dephi and igraph.
FM 506 Stochastic Processes in Finance
The topics covered in this course include the definitions and the classifications of stochastic processes, Poisson process, renewal theory, Markov chains and processes, Martingales.
FM 551 Scientific Computation and Simulation in Finance
Scientific computation and simulation in finance is a crossdisciplinary field which relies on mathematical finance, numerical methods and computer simulations to make trading, hedging and investment decisions, as well as facilitating the risk management of those decisions.
ITF 501 International Financial Markets
The main objective is to explore the primary theoretical and practical concepts that dominate international financial markets and those that should be taken into consideration during international risk management and investment decisions.
ITF 503 Advanced Corporate Finance
In this course net present value and capital budgeting, capital structure, valuation of the firm, IPOs, Mergers and Acquisitions will be covered and related cases will be discussed.
ITF 507 Corporate Financial Management
Topics covered are: introduction to finance, finance environment and participants in this environment, what the business finance deals with, financial statements and analysis, cash budgeting, time value of money and risk and return.
ITF 510 Investment Analysis and Portfolio Management
Topics covered are: investment environment, market players, securities markets, portfolio risk and return, efficient diversification, CAPM and APT, Efficient market hypothesis and Behavioral Finance and Technical Analysis.